KARACHI, May 25: Stocks on Wednesday fell across a broad front as investors, yearning for some quick financial stimulants, were not inclined to hold long positions even on the blue chip counters and preferred to indulge in intraday trading on small margin of profits. The KSE index fell by 92.42 points at 6,942.42 points or 1.31 per cent.

Apart from the issue of free float, there are some other irritants including details of clientele sought from each broker since December to April. Although the SECP Task Force has extended the time-limit by another week, its implications will continue to have negative impact on their working.

Brokers have been demanding an increase in free float to five per cent from the existing one per cent on the forward trading but conflicting reports about the SECP response on the issue further adds to the prevailing uncertainty, they said.

“Yes or no should have been the prompt reaction of the SECP on the issue if it really wants to see a robust market”, they said “in a straight fight between the brokers and the SECP, all are losers, small investors being the hardest-hit”.

The KSE 100-share index suffered a decline of 92.42 points or 1.31 per cent at 6,942.42 as compared to 7,034.84 a day earlier, reflecting the weakness of the leading base shares.

The opening was fairly encouraging, what the dealers called, the extension of the overnight run-up and in early trading the index rose to day’s peak level of 7,124.52 but late-selling pushed it down to the lowest for the day at 6,902.54. The closing was well above the day’s low on active short-covering in the pivotals.

PTCL, OGDC, PSO, and Pakistan Oilfields, having more than 50 per cent weightage in the index, were the chief target of profit-selling and again pushed it into the minus column. Pakistan Petroleum, another heavy weight was, however, an exception, up by Rs7.90 at Rs171.90 on 15m shares.

“The free float controversy just on the eve of federal budget is unfortunate”, analysts said “the pre-budget speculative buying, which has by now made a big showing is conspicuous by its absence”.

Investors ignored reports about the bidding for the controlling shares of National Refinery and Wednesday’s pre-bidding conference for PTCL. Rumours that the Saudi buyer of the KSEC had reportedly backed out and did not deposit first instalment of the agreed amount also worked against the underlying market sentiment.

Overvalued oil shares again led the decline, as the market rises or fall with them for the last couple of weeks, which is not a healthy development as it inhibits broad-base rally, which is badly needed now.

Although minus signs again dominated the list, some of the leading shares managed to finish higher under the lead of Noon Sugar, Premier Sugar, United Sugar, Attock Refinery, Attock Petroleum, Al-Ghazi Tractors, Ferozsons Lab, up by Rs3.25 to Rs6.35, the largest gains of Rs7.90, Rs9.90 and Rs14.00 were noted in PPL, Goodluck Industries and Bhanero Textiles.

Losers were led by Sapphire Textiles, EFU General Insurance, PSO, Pakistan Oilfields, Dawood Hercules, Sitara Chemicals, Artistic Denim, Valika Fabrics and Nestle MilkPak and National Refinery, off Rs10 to Rs18.10.

Trading volume rose further owing to heavy selling in PTCL, to 289m shares from the previous 276m shares but losers forced a strong lead over the gainers at 169 to 95, with 32 shares holding on to the last levels.

PTCL came in for heavy selling and led the list of actives, off Rs2.85 at Rs68.85 on 155m shares followed by OGDC, lower by Rs1.65 at Rs94.25 on 46m shares, PSO, sharply lower by Rs6.55 at Rs361.45 on 16m shares, Pakistan Oilfields, higher Rs5 at Rs261.50 on 9m shares, National Bank, lower by 50 paisa at Rs91 on 7m shares and Sui Northern Gas, up by Rs1.35 at Rs63.80 on 6m shares.

Other actives included D.G.Khan Cement, off Rs2.70 on 4m shares, PICIC Growth Fund, firm by 10 paisa on 3m shares and Fauji Fertilizer Bin Qasim, lower 40 paisa also on 3m shares.

FORWARD COUNTER: PTCL also led the list of actives on the cleared list, off Rs2.70 at Rs68.85 on 12m shares followed by PPL, sharply higher by Rs7.55 at Rs171.65 on 6m shares, and PSO, off Rs7.70 at Rs361.20 on 4m shares.